Jumbo Home Loans

Are you ready to buy your dream home? If so, you may need to borrow a significant amount of money in order. Jumbo loans can help you to do that. At 1st Advantage Mortgage, we offer Jumbo loans in North Carolina, South Carolina, & Florida – and our streamlined home loan process makes getting the right home loan faster, easier, and all-around less stressful.

Ready to get started? See how easy it is to get a Jumbo home loans with 1st Advantage Mortgage!

What Is a Jumbo Loan?

A Jumbo loan or Jumbo mortgage is a loan for an amount that’s higher than the Federal Housing Agency’s limits. These loans are not purchased or guaranteed by Fannie Mae or Freddie Mac, the two largest lending institutions in the U.S. Often, Jumbo loans are used to pay for luxury homes or those that are on larger lots. These loans are riskier for lenders and typically have more stringent requirements that homeowners need to meet.

Jumbo Home Loan Eligibility

A Jumbo mortgage limit typically refers to the threshold where conforming loans end and Jumbo loans begin. A conforming loan is the typical loan you’re familiar with, such as a Conventional loan or an FHA loan. However, these loans may not cover high-cost properties, which is when Jumbo loans become necessary.

For most of the United States, conforming loans end at $766,550. That means to purchase a home above that price you’ll likely need a Jumbo loan. However, in areas with a high cost of living the threshold for Jumbo loans is higher.

However, Jumbo loan limits may be different in different parts of the country. If you were to buy a home in California, you would likely pay much more for that home than one of the same size and with the same features in Iowa. That’s why Jumbo loan rates and limits vary based on where the property is located. It is important to learn what the Jumbo mortgage limit is in your area. For instance, in some parts of California, you only need a Jumbo loan if you’re borrowing more than $766,500.

Jumbo Home Loan Rates

Jumbo home loans are a higher risk for lenders. As a result, Jumbo loan interest rates tend to be higher than those for conforming loans. They also have much stricter qualifications for buyers. The exact Jumbo loan rate you pay is always very specific to your credit qualifications and other risk factors the lender has to take into consideration.

Benefits & Disadvantages of a Jumbo Loan

The benefit of securing a Jumbo loan mortgage is as simple as being able to purchase and finance a home that’s worth more. For borrowers who want to purchase that home on the waterfront or a larger estate, these loans become the only route to doing so unless you make a large down payment.

There are drawbacks to Jumbo loan mortgages, though. They tend to be harder to obtain, requiring a larger amount of income. You also need to show proof of income, credit score, and have a larger down payment to purchase them.

Jumbo or Conventional Loan? Which Is Better?

As you consider Jumbo home loans options, compare them to the availability of traditional loans called conforming loans. The most common type of conforming loan is the Conventional loan, which is also the type of loan that’s most often compared to Jumbo loans.

The biggest difference between Jumbo loans and conventional loans is the size of the loan. When you hope to buy a home that’s worth more and you plan to finance a large portion of that purchase, you’ll need a larger loan.

It’s also important to consider the difference between Jumbo loan rates and conventional loan rates. Interest rates are potentially higher with Jumbo loans because the lender is taking on more risk. However, rates are very competitive across most lenders. If you have a good credit score and the income to make payments, they are likely to offer a competitive rate.

You’ll also likely need a larger Jumbo loan down payment. Down payments on conventional loans may range from 5% up to 20%. In some Jumbo loans, lenders will not accept less than 20%. This differs by lender and loan program.

Jumbo Home Loan Requirements For Home Buyers

In order to finance a large home purchase, you will need to meet Jumbo mortgage requirements. Like with most loans, you need to show the lender you can make payments in full and on time if they lend to you. Most lenders have stricter qualifications for underwriting these loans. Some of them may include

Credit scores of 660 or more, sometimes 720 or higher
Debt-to-income ratios that are stricter, sometimes of 45%
Cash reserves on hand to show you have liquid assets
Documentation of your income
Appraisals of the property to prove its worth

Not sure if you qualify? Contact us today to talk with one of our friendly Mortgage Experts.

Jumbo loan mortgage lenders in NC and SC set their own credit qualifications, and most will tell you upfront what you need to meet to qualify for these higher risk loans. Jumbo loan requirements are not always hard to reach, though. If you want to buy a high-valued home, it’s worth learning more.

At 1st Advantage Mortgage, our Mortgage Experts can quickly review your situation and the home you plan to purchase to give you an idea of what you may qualify for. Contact us for more information.

How to Apply for a Jumbo Loan

To obtain a Jumbo loan, you’ll need to go through the same application process as you would for a conventional loan. Your lender will determine if you qualify based on the information submitted.

You’ll complete a formal application that also includes proof of your identification. Then, the underwriters will review this information and decide whether or not to lend to you. Ready to get started?

Documents & Paperwork to Submit

Proof of Income: This includes pay stubs, two years of federal tax returns, W-2 statements, and other documentation proving income.
Asset Verification: In addition to this, lenders need to see proof of assets you own, such as investment accounts and bank statements to prove down payments and cash reserves.
Employment Verification: Many lenders want to ensure you are working.
Identification: You will need to show proof of your identity, such as your driver’s license

All of this information is verified as accurate to ensure only those who should apply can do so.

Let's Get Started

Apply For A Jumbo Home Loan With 1st Advantage Mortgage Today

If you’d like to discuss your options further or have any questions about our lending services, to speak with one of our friendly Mortgage Experts.

Ready to get started? Great! Click “Apply now” below to begin your application.

Frequently Asked Questions

Jumbo Loan FAQs

What is a Jumbo mortgage?

A Jumbo mortgage has a value that is over the established conforming loan limits. These limits are set by county by the government each year.

How much is a Jumbo mortgage?

A Jumbo mortgage is a home mortgage over $510,400 for most of the country. The cost of a Jumbo mortgage includes fees associated with the application, the interest rate, and closing costs, which range from 5% to 7% of the purchase price.

Can you get a Jumbo mortgage with 10% down?

Some lenders will approve a Jumbo loan with 10% down, though others require as much as 20%. In most cases, Jumbo mortgages require a higher down payment. This is up to the lender and your other credit qualifications.

Legal information

² No -Down Payment Disclaimer: Closing costs and fees may still apply

³ Lending Disclaimer: Mortgage rates are subject to change and depend on the borrower(s) qualification. APR rate(s) quoted are based upon a (loan amount), (loan term, including whether fixed or ARM) year.

⁴ Refinancing Disclaimer: When refinancing your mortgage , you can typically reduce your monthly payment amount. However, your total finance charges may be greater over the life of your loan. Your 1st Advantage Mortgage loan professional will provide you with a comprehensive refinance comparison analysis to determine your total life loan savings.

⁵ VA Mortgage Disclaimer: VA home loan purchases offer options for a 0% down payment, no private mortgage insurance requirements, and competitive interest rates with specific qualification requirements. VA Interest Rate Reduction Loans (IRRRL) are exclusively for veterans with current VA loans – current loan rate restrictions apply, and limits to recoupment of costs and fees apply. VA cash-out refinances are available for veterans with or without current VA loans. Policies and guidelines may vary and are subject to individual borrower(s) qualifications. Program and lender overlays apply.

⁶ Down Payment Assistance Disclaimer: First-lien interest rates may be higher when using a DPA.

⁷ Pre-Approval Disclaimer: Pre-approvals are granted to clients who meet qualifying approval criteria and specific loan requirements at the time of application. Results may vary.

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North Carolina Mortgage Broker License: B-217173

Florida Mortgage Broker License: MBR6689